Although it has received much less prominent media coverage over the last year or so, we are still occasionally getting questions from our clients about the European economy and the “Euro currency crisis”.
Here we will give you our personal take on the subject but keep in mind we are experts in currency exchange rates and Forex Services rather than politics!
In the late twentieth century, most of the countries in the European Union made a decision to move to a common currency which they called the ‘Euro’.
That decision was controversial and many sceptics said it was more about political union than economics but it went ahead and it’s probably fair to say that the problems in the earlier years of the 21st century were fewer in number than originally anticipated.
The Euro crisis
Towards the end of the first decade of the new century, the global financial crises struck at the heart of many economies including those of the European Union.
However, those effects were not uniform. They were far more noticeable in some countries than others, including Ireland, Spain, Portugal, Italy and Greece.
In a normal currency market, those countries may have been able to devalue their currencies to help weather the storm but that was no longer an option to them as they were locked into the Euro.
As a result, the currency was placed under huge pressure for some years in the international markets and its future appeared far from certain. Today, a much greater degree of stability has returned and although the position isn’t totally secure, comparatively few are now questioning the survival of the Euro as a currency.
The European economic woes
More recently, there has been widespread international concern over the stagnation of much of the Eurozone economic infrastructure. With the exception of one or two countries, growth appears to be zero and some are bordering on what may become a triple-dip recession.
This is inevitably having some effect on the currency exchange rates available for the Euro against certain other major global currencies. This is a separate issue to the old ‘Euro Crisis’ one of some years ago.
None of this affects our services in supporting your needs for currency exchange rates and dollar to Euro conversions (or the reverse).